Reps approve 2025 MTEF, peg exchange rate at N1,400/$

The House of Representatives on Wednesday passed the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) submitted to the House by President Bola Ahmed Tinubu.

Daily Trust reports that the passage of the MTEF/FSP by the National Assembly prepares the ground for the president’s presentation of the 2025 budget.

The MTEF/FSP provided the key parameters for preparing the annual budget, including the projected exchange rate, oil benchmark, and inflation rates.

It was approved after clause-by-clause consideration at the Committee of the Whole following the presentation of the report by the Committees on Finance and National Planning, and Economic Development at plenary.

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Key parameters of the MTEF/FSP approved include projected oil benchmark prices of $75, $76.2, and $75.3 per barrel for 2025, 2026 and 2027 respectively.

The House also approved a projected exchange rate of N1400/USD for 2025, 2026 and 2027 while inflation rate projections were put at 15.75%, 14.21% and 10.04% respectively for 2025, 2026 and 2027.

The House in anticipation of an increase in domestic crude oil production raised the daily oil production projection from 1.78 million barrels to 2.06 mbpd, 2.10 mbpd and 2.35 mbpd for the subsequent years of 2025, 2026 and 2027.

The GDP growth rates were projected at 4.6%, 4.4%, and 5.5% for 2025, 2026 and 2027 respectively.

The proposed 2025 budget stands at N47.9 trillion exclusive of transfers, with debt service taking N15.38 trillion; a proposed capital expenditure of N16.48 trillion and a fiscal deficit of NGN13.08 trillion. 

The report added that, following the criteria in the overview of the framework for revenues and expenses, the 2025 budget’s proposed spending stands at NGN47.9 trillion, of which NGN34.82 trillion was retained.